Judge says Apple likely violated SEC rules

Major Apple (AAPL) shareholder Greenlight Capital, headed by billionaire hedge-fund manager David Einhorn, recently sued the consumer electronics giant in an effort to limit the company’s ability to offer preferred stock. At the heart of its claims, Greenlight is arguing that combining three separate items into one proposition — one of which would change the way Apple’s board issues preferred stock — is a violation of SEC rules against “bundling.” On Tuesday evening, the judge presiding over the case said that he is inclined to agree.

“Candidly I do think the likelihood of success is in favor for Greenlight on the merits,” U.S. District Judge Richard Sullivan said during a hearing on Tuesday evening, Fortune reported.

The judge said a decision in the case will likely be made before Apple’s upcoming shareholders meeting on February 27th.